Analysis of transactions in the EUR / USD pair
The pair tested 1.0650 when the MACD line was just starting to move above zero, which was a good reason to buy. However, there was no price increase, so the trades ended with losses. Fortunately, the pair tested 1.0624 in the afternoon, during which the MACD was going below zero, giving an opportunity for traders to sell. This resulted with a price decrease of over 40 pips, offsetting the losses seen earlier.
Strong US GDP data allowed the bears to take hold of the market for a while, but the situation leveled out by Friday's Asian session. And since no important statistics are scheduled to be today, the market promises to be calm in the morning, in which trading will remain within the horizontal channel. But in the afternoon, US data on income, expenses and personal consumption may give a boost to dollar if the figures show a significant increase. Only a fall in the primary market housing sales may undermine the bullish momentum as poor real estate market statistics are a harbinger of recession. The long-term durable goods orders data will be ignored as it is not particularly important to the market.
For long positions:
Buy euro when the quote reaches 1.0615 (green line on the chart) and take profit at the price of 1.0655. Although there is little chance for growth today and it is only within the horizontal channel, traders can still buy if the MACD line is above zero or starting to rise from it. Euro can also be bought at 1.0602, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0615 and 1.0575.
For short positions:
Sell euro when the quote reaches 1.0602 (red line on the chart) and take profit at the price of 1.0575. Pressure will increase if the US reports strong GDP data. But take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 1.0615, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0602 and 1.0575.
What's on the chart:
The thin green line is the key level at which you can place long positions in the EUR/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the EUR/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.